Bitcoin, considered the largest cryptocurrency by market capitalization, will exit November with trading prices significantly lower than it had at the same time last year.
It can be recalled that on November 10, 2021, BTC was able to reach its all-time high (ATH) of $69,044.
Unfortunately, the crypto asset has already lost 76% of that value as it changes hands at just $16,582 according to Quinceko at the time of this writing. Year-to-date, the first digital coin is down 71.3%, as it falls far short of its impressive performance of last year.
Bitcoin’s struggles have recently been aggravated by the FTX crypto exchange implosion which wiped out the entire crypto market by almost $200 billion in terms of overall valuation.
With this in mind, Bitcoin miners are feeling greater pressure as they continue to deal with the perpetual problems they began to face when the industry came to life.
Massive Liquidations by Bitcoin Miners
Quantitative asset management firm Capriole Fund, founder of Charles Edwards, recently Noted that he’s seen a bitcoin miner sell-off that’s dramatically increased by 400% this month.
It’s a bitcoin miner bloodbath.
The most aggressive miner sold for almost 7 years now.
Up to 400% in just 3 weeks!
If the price does not rise soon, we are going to see a lot of Bitcoin miners shutting down. pic.twitter.com/4ePh0TIPmZ
— Charles Edwards (@caprioleio) November 21, 2022
Image: The European Business Review
At this point, the miners are dealing with three eternal challenges in carrying out their ordeal to produce the most valuable cryptocurrency, Bitcoin, leading to their current and unfortunate situation.
The first is that it becomes more difficult for miners to mine the next block when hash rates approach their maximum levels.
The second concern relates to energy costs which, to date, remain extremely high most of the time, reducing the profit margins of the companies involved in the activity.
In fact, Iris Energy, an Australian company, was forced to shut down its Bitcoin mining hardware after being left with a gaping $108 million in debt.
Finally, the current price of BTC. As mentioned earlier, it is still feeling the effects of the prevailing bear market, even struggling to break through $17,000 as of this moment.
Hashrates are rising despite the difficulties
Although Bitcoin miners are in dire straits right now, their performance remains impressive globally hash rate keep going up.
According to blockchain.com, the network records a hash rate of 261 EH/s (exahashes per second). On November 2, just before the FTX drama began, Bitcoin’s mining hash rate peaked at 273 EH/s.
This is even after China cracked down on BTC miners operating in its territory last year, causing their exodus and relocation to other business-friendly countries.
Crypto total market cap at $788 billion on the daily chart | Featured image from Coin Edition, Chart: TradingView.com